Which of the Following Explains Why Increasing the Minimum Wage

Which of the following explains why increasing the minimum wage may fail to reduce income inequality or the poverty rate?

A) The Wessel's effect only applies to those workers with fringe benefits.
B) Employers may expect increased effort from workers after a minimum wage increase.
C) The majority of those affected by the minimum wage live in households with aggregate income far above the poverty line.
D) The minimum wage causes an increase in the out of poverty escape rate.
E) Earning the minimum wage cannot give the worker enough income to put him above the poverty line.

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